USA: Chamber of Commerce boss wants to abolish tariffs

new York US companies are sounding the alarm about high inflation and calling on the government to act. The CEO of the powerful US Chamber of Commerce, Suzanne Clark, wants to fight inflation with fewer tariffs, more investment in fossil and renewable energies and a doubling of legal immigration. The chamber boss told the Handelsblatt.

She represents the interests of the American corporate world. The spectrum ranges from Google and Facebook to the major bank Citi and the oil company Exxon to the pharmaceutical giant Pfizer.

In the US, inflation rose to 9.1 percent in June – the highest level in 40 years. Companies also feel this when they buy raw materials or when fuel costs for transport increase. Amazon, for example, had two billion dollars higher costs in the first quarter simply because of inflation.

In addition to the high energy prices, the damaged supply chains, the lack of employees and the still existing tariffs on imports from China are also responsible for the price increases, says Clark. Therefore, the head of the chamber calls for more legal immigrants, more investments in energy and the abolition of tariffs on goods from China.

Top jobs of the day

Find the best jobs now and
be notified by email.

“An American family pays $1,200 more a year just because there are these tariffs on goods from China,” Clark calculates. That is why she is campaigning in Washington for Joe Biden’s government to abolish the tariffs introduced by his predecessor Trump on various goods. According to calculations by the trade think tank Peterson Institute for International Economics, this would reduce inflation by one percentage point.

The government has already abolished the tariffs imposed by Trump on European goods. On the other hand, Washington is still hesitant about tariffs on Chinese goods. This is also due to the fact that the possible effects are not yet entirely clear. After all, the tariffs were also intended to protect American workers from cheap imports and thus secure jobs.

Goldman Sachs CEO calls for more childcare

However, American jobs are currently less of a problem. On the contrary: 11.5 million jobs are currently vacant in the USA.

Clark is therefore calling for greater state support for childcare. This allows parents to get back to work.

The CEO of Goldman Sachs, David Salomon, was also concerned about the topic in an opinion piece for the business broadcaster CNBC this week. He called on the government to invest more in childcare to support smaller businesses. “Congress could help by expanding and promoting programs that reduce childcare costs and strengthen regions considered ‘childcare deserts,'” he writes.

But that alone is not enough, according to Clark, the head of the chamber. “We need to double legal immigration,” she says.

>> Read also: Biden calls climate change an “emergency” and announces further measures

That, too, would be a reversal of Trump’s policy of reducing the number of visas issued. The immigration that is now needed is not only about highly qualified tech workers. “We currently also need truck drivers,” says Clark.

Agricultural representatives in Washington have also campaigned to issue more visas for workers from abroad. A corresponding bill could soon go through with the votes of both parties.

Criticism by Bezos and Musk

The government has received criticism from prominent company bosses such as Jeff Bezos and Elon Musk. They accuse it of unnecessarily fueling the economy with its generous stimulus programs last year.

Amazon founder Bezos and US President Joe Biden even got into a Twitter argument a few weeks ago; Biden tweeted that to fight inflation, “the wealthiest companies should pay their fair share.” The Amazon founder retaliated: “Inflation is a regressive tax that hits those who have least most. Misleading doesn’t help the country.” Rather, the government’s stimulus programs are to blame for the high inflation.

A few days later, Elon Musk followed up: “This government doesn’t seem to get anything right,” the Tesla boss etched in a podcast.

Chamber boss Clark, on the other hand, relies more on diplomacy. Especially when it comes to energy policy, she calls for a clearer and more generous line from Biden. It is about allowing more oil production and investing in alternative energies. “We need both,” says Clark. “But above all, companies need more assurance that the government will support investments in energy.”

Chevron CEO Michael Wirth wrote to the US President in June: “To lower prices and increase supply, we need a new approach,” he wrote. “The energy sector needs the cooperation and support of the government.”

>> Read here: Biden’s climate policy threatens to fail

This includes a clear line when it comes to permits and regulation. “Above all, we need an honest dialogue on how we can best balance energy policy, economic and environmental policy goals,” emphasizes Wirth.

Biden’s climate policy is met with resistance

Biden is currently pushing the oil companies to pump more oil and gas while promoting renewable energy and electric cars. In fact, he is encountering great resistance with his ambitious climate policy. Not only has the Supreme Court recently restricted the powers of the environmental authority Epa in power plants. His own party colleague, Joe Manchin, from the coal state of West Virginia, recently blocked a legislative package that had earmarked several hundred billion dollars for climate policy.

If the US produced more oil and gas, that would also benefit the Europeans in the energy crisis, argues Chamber President Clark. Because that could dampen world market prices, and the Americans could supply more liquid gas. “We owe that to our friends in Europe,” says Clark.

Finance Minister Janet Yellen’s idea of ​​relying more on so-called “friend shoring” in the supply chain – i.e. buying from friendly countries – is something the chamber boss can definitely gain something from. “Can friend shoring and near shoring be part of the solution? Absolutely. But not alone,” she says. You also have to be careful not to become dependent on one country. “We’re seeing just how dangerous that is with Russia,” Clark states.

More: More than 600 euros per megawatt hour – electricity prices climb to record levels.

source site-11